Power Nickel Inc. (TSXV: PNPN) has successfully closed an oversubscribed flow-through offering, raising $20.1 million. The financing was marked by the significant involvement of mining industry titan Robert Friedland, alongside other notable investors such as Rob McEwen, CVMR Inc., and Terra Capital.
Friedland’s participation is seen as a strong endorsement of Power Nickel’s Nisk project in Quebec, which aims to become Canada’s next major poly metallic mine, featuring high-grade nickel, copper, platinum group metals (PGM), gold, and silver.
“Power Nickel is grateful for the support of some of the leading investors in mining. Like us, they believe Nisk has exceptional exploration upside,” remarked CEO Terry Lynch. He emphasized the boost in exploration capabilities this funding will provide, particularly with the addition of a second drilling rig to the current one targeting the extension of the Lion Zone.
The offering included 16,049,998 flow-through units at $1.25 per unit, each comprising one flow-through common share and one-half of a share purchase warrant, exercisable at $1.25 per share for three years. The financing was managed by Wealth Creation Preservation & Donation Inc. and IA Capital Markets, with advisory support from Red Cloud Securities Inc. and H&P Advisory Limited.
The gross proceeds are designated for exploration activities on the Nisk property and eligible Canadian exploration expenses qualifying for the federal 30% critical mineral exploration tax credit​.
Power Nickel’s strategic plan involves significant expansion of its drilling programs at the Lion Zone, aiming to capitalize on the high-grade mineralization and the broader potential of the Nisk property.
The Nisk property boasts a substantial 20-kilometer strike length with numerous high-grade intercepts. Power Nickel is focused on expanding the high-grade nickel-copper PGM, gold, and silver mineralization through a series of drill programs designed to test both the initial Nisk discovery zone and the Lion discovery zone, while also exploring the land package for adjacent potential poly metallic deposits​.
In addition to the Nisk project, Power Nickel holds significant land packages in British Columbia and Chile. These assets are expected to be reorganized into a related public vehicle through a plan of arrangement, highlighting the company’s broader strategy to consolidate and maximize its resource potential.
The offering is subject to TSX Venture Exchange final filing requirements, and all issued securities are under a four-month-plus-one-day hold period.
Power Nickel last traded at $0.88 on the TSXV.
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